The directive, which came into effect on Wednesday, was issued by William J. Pulte, the present director of the Federal Housing Finance Agency (FHFA). The FHFA has been supervising Fannie Mae and Freddie Mac since 2008, post the financial crisis that led to both institutions being placed under government conservatorship.

Pulte stated that the decision to include cryptocurrencies in the mortgage risk assessment process was taken “after significant studying” and is in line with President Trump’s objective of establishing the United States as the global crypto capital.

This decision implies that cryptocurrencies will now be deemed a reserve asset for loan borrowers without the need to convert these assets into US dollars, a requirement in the past. Fannie Mae and Freddie Mac have been instrumental in sustaining the US housing market post the subprime mortgage crisis, by purchasing mortgages from lenders, which in turn enables lenders to issue more loans.

Further information on this developing story will be updated as it becomes available.

The post Crypto Assets Acknowledged in Mortgage Risk Evaluations by Fannie Mae and Freddie Mac appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

“We will investigate the application of cryptocurrency assets in relation to mortgage qualifications,” declared FHFA Director Bill Pulte on a social media platform X on a recent Tuesday.

This move by the federal housing regulator to examine the integration of digital currencies into the mortgage approval process underscores an escalating acceptance of cryptocurrencies in mainstream society. This aligns with their growing incorporation into the wider financial industry.

However, the FHFA director did not elaborate on the breadth of the study, specific digital currencies to be evaluated, or the timeframe for the research. The Block has contacted the FHFA for additional details.

Pulte took over the directorship in March of this year, following his nomination by President Donald Trump in January. Pulte has publicly shown an interest in cryptocurrencies since 2019, when he disclosed the acquisition of 11 bitcoins.

As per Pulte’s financial declaration, made public in February, the FHFA director revealed investments in Bitcoin and Solana, each estimated at between $500,001 and $1 million. He also possessed shares of Bitcoin mining-centric firm, MARA Holdings.

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The post US Federal Housing Body Explores Crypto’s Role in Mortgage Approvals appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.